Sugar stocks drop on price concerns

MUMBAI: Shares of sugar companies fell for the second day on Thursday, dropping up to 4%, after the government announced a slew of measures to tame the rising price of the sweetener.

Shares of Simbhaoli Sugar dropped 4% to settle at Rs 86.20. During the trade the scrip fell 4.4% to a low of Rs 85.80. Shree Renuka Sugar closed lower by 2.07% at Rs 231.40, while Oudh Sugar Mills was down 3.56% at Rs 77.15. Sugar prices have become a cause for concern for the government, with retail prices nearing Rs 50 a kg. The price of the sweetener rose 53.98% in December year-on-year .

The government has relaxed the norms for processing of raw sugar and allowed duty-free import of white sugar till December-end .